IP Team holds RTD with ASec. Aldaba

September 20, 2014

AER-Industrial Policy Team

Last September 17, 2014, the Action for Economic Reforms Industrial Policy Team (AER IP Team) held a roundtable discussion with DTI Assistant Secretary Rafaelita Aldaba to talk about the DTI’s Industry Roadmaps at Balay Kalinaw, University of the Philippines, Diliman, Quezon City. ASec. Aldaba together with members of the DTI Roadmap Team presented the plans for the industry roadmaps and how they are related to the government’s goal of inclusive growth and job creation..

Roadmap for Structural Transformation in the Manufacturing Sector

The DTI is planning to create a roadmap for the manufacturing industry that is globally competitive with strong domestic and international linkages with other industries and global value chains. They want this to contribute 30% in value added and 15% in total employment. This is to be done in three phases (short term, medium term, and long term). They are to implement government measures that are going to be supported by open trade regime, sustainable macro policies, sound tax policies & administration, efficient bureaucracy, secure property rights, institutions that promote adaptive research & patent regime, access to finance & technology for SMEs.

After studying the roadmaps, the DTI noted that most of the manufacturing industries are potential areas of comparative advantage. Also, most of them are related to each other. Industry roadmaps are driven by the private sector with partnership with BOI and PIDS. These were reviewed and revised and the manufacturing roadmap was produced. Currently, the BOI received 21 finished roadmaps. Three drafts are with BOI and are undergoing review. There’s a commitment to finish these within the fiscal year.

Roadmap for Structural Transformation in the Services Sector

This roadmap is still being finalized by the DTI. The vision is a globally competitive services sector and they want to move up the value chain and enable structural transformation. Some suggested action steps include increasing investment in infrastructure development. Also, it’s proposed to move up in global value chains. There’s also a need to solve issues on promotion, human resource development, skills development, SMEs support, academe linkages, and innovation.

DTI saw some areas of comparative advantage for the services sector. According to them, we have a pool of skilled, semi-skilled, and highly skilled workers (main advantage). There are also potential services sectors that can move up the value chain. PPP projects can also be strength or source of growth for this sector if tapped properly. Public infrastructure and logistics systems improvement are also potential solutions.

Comprehensive National Industry Strategy (CNIS)

This strategy involves the integration of the manufacturing, services and agriculture industries. According to DTI, to achieve structural transformation and move up the value chain, we need to focus on these channels to achieve inclusive growth and job creation. This strategy requires government policies and programs; institutions; infrastructure; macroeconomic stability; rule of law; peace & order; and a good political climate.

Industry Development Council

The DTI is part of the Industry Development Council, which is a multi-sectoral inter-governmental body that aims to discuss industry level reforms. It is composed of executive and working committees that will closely work on industry reform issues. As of April, the council is convened and there will be another meeting on October of this year.

“The success of government reforms has led to the economy’s recent strong performance. With the industry roadmap’s clear vision to transform the economy & a more pro-active government bent on achieving this goal, PH is now seen as a good place to invest.” ASec. Aldaba stated at the end of their presentation.

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